Dung Quat Refinery Expansion: Land Clearance Work Accelerates

In the modernization and expansion project of the Dung Quat Refinery in Quang Ngai province, central Vietnam, land clearance work is progressing ahead of schedule. This project plays a crucial role in strengthening Vietnam's energy supply capacity and revitalizing the regional economy. The land clearance covers a total area of 36.3 hectares, with the aim of completion within 300 days from the contract's effective date. To date, over 200,000 cubic meters of soil have been excavated and more than 1.65 million cubic meters of fill material have been used, exceeding 61.4% of the overall progress. Key areas, including the product tank farm and flare stack area, are seeing work advance at a faster pace than planned. However, risks of project delays are emerging. A potential shortage of approximately 550,000 to 600,000 cubic meters of fill material has been identified. Two of the four permitted sand and gravel extraction sites, Nui Chua and Choi Chuc, are unable to meet their projected output due to the presence of rock formations, yielding material that does not meet the project's technical standards. The other two sites, Dong San and Pho Tinh, are also hindered by issues related to compensation and land acquisition with local residents, preventing them from operating at full capacity. In response to this situation, BSR (Binh Son Refining and Petrochemical Joint Stock Company) has requested the Quang Ngai provincial authorities and relevant departments to expedite the resolution of issues at the Dong San and Pho Tinh sites, or to consider granting permits for alternative suitable extraction sites. This is to ensure the timely completion of land clearance and facilitate the subsequent equipment installation by the EPC (Engineering, Procurement, and Construction) contractor. The Dung Quat Refinery expansion project has a total investment of nearly $1.5 billion USD and received approval for its revised investment policy from the Prime Minister in May 2023. The objective is to increase the refinery's processing capacity from 148,000 barrels per day to 171,000 barrels per day, producing fuels that meet Euro V standards and Vietnam's environmental regulations. This initiative is expected to reduce emissions, enhance environmental protection, stabilize the domestic fuel supply, and improve BSR's operational efficiency while increasing its adaptability to global crude oil market fluctuations. Provincial leaders in Quang Ngai emphasize the project's significance, not only in boosting the refinery's competitiveness but also in solidifying the province's role in the national industrial-energy value chain. It is seen as laying the foundation for establishing Dung Quat as a national oil refining and petrochemical hub. The completion of the project is anticipated to generate a strong ripple effect, driving economic restructuring, fostering supporting industries, developing high-quality human resources, creating stable employment, and significantly contributing to local revenue, thereby supporting the goal of achieving double-digit growth and positioning Quang Ngai as a developed province and a dynamic growth pole in the central and Central Highlands regions. Source: Nhan Dan